Are you a homeowner nearing retirement looking for ways to invest money? Are you looking to release equity from your home by downsizing? Property sales in the US were up by 3% in February so the real estate market in many States is buoyant. Read on to discover the options to release additional income to make your retirement more comfortable?
Is it time to downsize?
With property sales in many markets up, now might be a great time for you to look into selling your large family home with the goal of moving to a more manageable property. It could be the case that, like 39 million other American’s, you are having problems affording your home. If this is true, or it is simply the case that you are no longer using all the space, downsizing is a good option for you. This can be a difficult decision – but remember, downsizing your home could still leave you with a comfortable home and more money in your pocket.
Can you release equity?
In 2017, real estate prices in the 20 major cities across America rose by between 3% and 12%. This means that for many homeowners, there is also an increase in equity available in their property. Have you considered a reverse mortgage, also known as a home equity conversion mortgage? If you want to remain in your current home and live off the available equity that you have built up over years of mortgage repayment, this could give you the best of both worlds.
Can your home pay you?
If you have unused space within your home or a property with large amounts of land, it could be possible to make your property pay you. If you have rooms left vacant by grown up children, it is possible to rent these out to holiday makers or even as short term rentals. As an example, renting a spare room in a 2 bed property as a holiday let in a popular city could net you up to 80% of your mortgage payments. If your property has unused land, perhaps you could set up a campground or setup small holiday apartments to rent out. It is then possible to earn additional income by adding pay to use facilities such as a laundry room.
Whatever your situation, there are options available for you to set yourself up for your retirement by utilizing your existing real estate.